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435 (b) prior to, or concurrently with accepting title the City of be fur- nished releases from all persons having an interest in the five lots holding the City harmless for any liability for damages or claims for damages arising out of either (1) the earth slippage and land subsidence occuring to date; (2) City's operations in providing aid and assistance during and subsequent to earth movement, and (3) any additional earth slippage or land subsidence which might occur... Council also signifying its willingness to execute a release of liability, re- leasing the owners of each lot and the subdivision developer from liability for City's costs and expenses incurred in connection with earth movement and grading and shaping of the lots. Councilman Granger asked Staff to state these lots would not be used for building lots and what our liability might be as far as damages concerned. City Manager stated not Staff's intention to recommend a restriction as to building as Staff felt lots should not be tied to any conditions, although no forecast possible at this point as to ultimate use. The purpose at this point was to enable City to stabilize earth movement and enter into agreement for purpose of protecting public interest of Nob Hill Road and Farm Hill Boulevard. City Manager stated consideration of this proposal had been discussed with City's insurance carrier, members of Council, and City Attorney, concerning liability City might have at this time because of City's positive action taken in the area, and if title taken to lots it may or may not increase liability, but City could then enter to stabilize and reshape lots. He advised it was his understanding that City was covered under general lia- bility policy and also covered under the $100,000,000 "umbrella" insurance. City Attorney advised on the extent of the City's liability. He advised insurance coverage might differ if City were "land -owner" instead of "on -looker". He will explore this aspect further. Councilman Henderson felt more assurance should be given by City Attorney before acceptance of deeds to lots. City Attorney advised if Council recognized all risks, nothing wrong with proceeding with action proposed. Councilman Henderson questioned effect if slide should extend to land adjacent to this area, and status of disaster funds. City Manager stated it would depend upon any action which might be taken against the City. Mayor Herkner questioned liability still existing if City did not accept lots. City Attorney advised a fair basis for this proposal for settlement had been arrived at by all of attorneys involved being convinced that if individuals started suits, more legal expenses would result than the value of all the five houses put together. Councilman Henderson asked whether funds could be used from storm drainage bond issue funds for resolving any of thisproblem. City Manager advised this is in the bond district, but no funds had been allocated or planned for this area; however, a small amount of money, originally $50,000 had been reserved for spot drainage projects that could be picked up on an individual